by Nicole Nolan

Created on: February 05, 2009

This is a difficult issue. Many students do not know how to manage money, but a credit card can teach lessons thoroughly even if harshly. I have had my ups and downs with my credit card, but now it acts as a useful tool for me to pay things when I am tight (books anyone?), not be late for bills, and to put money into my art.

My parents tried for years to emphasize financial responsibilty, but none the less, my first credit card resulted in a trip to NYC, designer shoes, a designer jacket, and a mini dress that never fit- and ofcourse, months of debt. Because I didn't see all the costs at once, I ended up going well over what I had saved in the bank. The trip cost me close to $1000. Great memories, but I learnt the hard way to pay it back.

In another instance, I maxed out my card at $1000, after preparing for cold weather with an Oakley coat, getting equestrian boots, lots of Lululemon, and lots of delicious meals at good restaurants. This was also near my 19th birthday, so the $10 cocktails added to it. I spent months trying to get rid of that debt, but the second time worked and gave me a slap in the face.

Now, I can happily say, that while frivolous purchases occasionally occur (keep me away from fabric stores) I am a better saver and money manager even when I am not using my credit card. Now, I reserve it for occasional online purchases, pre-paycheck bill payments, and getting art supplies when I know I am close to coming into money. I don't think that I would have any savings if I hadn't gotten myself into debt, as it really taught me the value of money. The regular payments also got me used to living on $100 or less from payday to payday, so now I am able to put all my excess that I used to pay on Visa into savings- and it becomes invisible once it is there. It is my new Visa payment- the money is gone once it is transfered to savings, and when I go to buy a house, or to go into my Master's degree, I will be able to do it.

Parents, if you are worried about your children getting into debt, let them. Just make sure their card has a low cap such as $1000, and do not help them when they max it. My parents helped me a little the first time, and I didn't learn as quickly. Give them advice by all means, but do not help them out of debt. They will likely ignore all your financial wisdom until they are forced to, but they will be much wiser when they do learn it. I am a 19 year old who is already looking into RSPs and will be able to hopefully pay my Master's tuition up front in three years time.

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